Finance Commission was formed under article 280 of the constitution. The first Finance Commission was set up in the year 1951 and K.C, Niyogi was appointed the Chairman. President has the authority to appoint a Finance Commission. It is a constitutional body which defines the centre-state federal relation. Its primary task is to recommend division of States’ revenues collected by the Centre of the divisibility pool between the centre and the states and the share to be allocated to each state. One of the important responsibilities of the Finance Commission is to take measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State.
So far 14 finance commissions have been appointed.
|Finance Commission||Chairman||Years of Establishment||Duration|
|I||K C Niyogi||1951||1952–57|
|III||A K Chanda||1960||1962–66|
|IV||P V Rajamannar||1964||1966–69|
|VI||Brahma Nand Reddy||1972||1974–79|
|VII||J M Shellet||1977||1979–84|
|VIII||Y B Chawan||1983||1984–89|
|IX||N K P Salve||1987||1989–95|
|X||K C Pant||1992||1995–2000|
|XI||A M Khusro||1998||2000–2005|
|XIV||Y V Reddy||2013||2015–2020|